Post a New Question

personal finance

posted by on .

Determining the future value of education. Jenny Franklin estimates that as a result of completing her master's degree, she will earn $7,000 a year more for the next 40 years. A.) what would be the total amount of these additional earnings? B.) what would be the future value of these additional earnings based on an annual interest rate of 6 percent?

  • personal finance - ,

    A. 40yrs * 7000/yr = $280,000.

    B. Pt = Po(1+r)^n.
    r = APR = 6% = 0.06.
    n = the # of compounding periods.

    Pt = 7000(1.06)^40 = $720,000.26.

Answer This Question

First Name:
School Subject:

Related Questions

More Related Questions

Post a New Question